RBS have put out a research note 2 March 2012. It gives a discounted valuation and target of $2.34. I don't know if that's a short term target or 12 month.
Interestingly they have a forward PE ratio of 1.4. That compares to my 1.7 although my 1.7 excluded earnings from Australia so my numbers and theirs appear very much in line.
You would think once it’s in production their valuation and target will be much higher based on an estimated PE of 1.4. Even a very conservative (and too low) PE of just 5 would give a sp of $5. Not bad upside for 1.5-2 years. Downside to valuation (but not short term sp) is very limited without Andash thanks to Aussie assets.
KGL Price at posting:
$1.43 Sentiment: Buy Disclosure: Held
